Student Loans Forgiven at Louisville College That Closed

In the last couple of years, several for-profit colleges in Kentucky have closed leaving students with incomplete transcripts and even worse, debt.

One college in Louisville is settling the loan debts of nearly 700 students as part of violations of the Kentucky Consumer Protection Act.

Spencerian College, which was owned by Sullivan University, is also letting students fix their credit scores and allowing them access to their transcripts following a legal settlement Kentucky Attorney General's office.

Although they admitted no wrongdoing, Sullivan agreed to forgive more than $1.7 million in private loans made to almost 700 students between 2007 and 2011. Of the loans involved in the settlement, 70 had been placed in third party collection and six had been paid in full since June of last year. Over 500 are in active repayment. Collections and wage garnishments associated with the now forgiven debts have been halted.

Spencerian stopped enrolling students last June after a merger with Sullivan.

Attorney General Andy Beshear has asked any students who believe a private college misled them who were affected by fraudulent debt services can call his office at (502) 696-5300.